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DishTV does U-turn; confirms Yes Bank request to hold EGM, rejig board

DishTV does U-turn; confirms Yes Bank request to hold EGM, rejig board

The company said it received the notice from Yes Bank on e-mail after it had intimated the exchanges on Thursday morning confirming that it had not received any request from the bank for holding an EGM

Earlier this month, Yes Bank had sought the removal of five directors of Dish TV following the board’s decision of raising Rs 1,000 crore via a rights issue Earlier this month, Yes Bank had sought the removal of five directors of Dish TV following the board’s decision of raising Rs 1,000 crore via a rights issue

Direct to Home (DTH) service provider Dish TV India Limited again confirmed on Thursday that it received a request from Yes Bank for holding an EGM (extraordinary general meeting). 

The company confirmed the development after denying a media report earlier in the day suggesting the same. 

"The company has received a letter titled 'Requisition for calling an Extraordinary General Meeting of the shareholders of Dish TV India Limited under Section 100(2}(a) and other applicable provisions of the Companies Act, 2013 and the Rules framed thereunder' from Yes Bank limited dated 21 September 2021," Dish TV said in a regulatory filing. 

It added that the notice from Yes Bank was received by the company on e-mail after it had intimated the exchanges on Thursday morning confirming that "it had not received any communication/request from Yes Bank for holding an EGM."

"The Company is examining the said letter, its related attachments and will take necessary steps as per applicable law," Dish TV further stated in its filing.

Earlier in the day the company had refuted a media report that suggested that Yes Bank had called for an extraordinary general meeting (EGM) and to reconstitute the company's board. Yes Bank is the largest shareholder of Dish TV India with a 25.63 per cent stake.

"The said news article inter alia mentions that on Tuesday, Yes Bank Limited has sent a letter to the Company with a demand to hold an Extra Ordinary General Meeting (EGM). In this regard, we would like to bring to your kind attention that the Company has not received any communication/request from Yes Bank for holding an EGM. The said media report in this regard is incorrect," the company said in a regulatory filing.

Mint had reported that Yes Bank had urged the company to hold an EGM and act on its recommendations to reconstitute the company's board. 

Citing people aware of the matter, it also reported that Yes Bank had sent a letter seeking an EGM after the DTH company deferred its annual meeting that was earlier scheduled for September 27 to an undetermined date. All of these claims were refuted by Dish TV India Limited.

Earlier this month, Yes Bank had sought the removal of five directors of Dish TV following the board's decision of raising Rs 1,000 crore via a rights issue. 

The directors were Rashmi Aggarwal, Bhagwan Das Narang, Shankar Aggarwal, Jawahar Lal Goel, and Ashok Mathai Kurien to be removed. 

Yes Bank had said that the decision to approve a rights issue despite facing objections was done to dilute its stake in the company. 

Dish TV had said in response to Yes Bank that it is examining the special notices sent by them and said that "for such approvals, as may be required including the steps to be taken to get the candidature of proposed new directors cleared from necessary authority as prior approval from it is a mandatory requirement".

Also read: Dish TV Q1 consolidated net profit declines 34.07% to Rs 49.14 cr

Also read: Yes Bank seeks removal of 5 Dish TV directors after its board proceeds with Rs 1,000 cr rights issue